A minor dip during the recession has not stopped this industry from growing steadily
New York, NY (PRWEB) March 04, 2014
In 2014, the Dance Studios industry is expected to generate $2.2 billion in revenue. This represents average annual revenue growth of 2.3% over the past five years, including expected growth of 2.4% in 2014. According to IBISWorld Industry Analyst Stephen Morea, “The popularization of dance-inspired television shows and rising interest in dance as an alternative form of exercise have positively impacted the industry over the past five years.” In particular, dance studios offering Latin-inspired, fusion and ballroom dance classes have benefited from rising consumer demand. For instance, there was a 30.0% spike in the number of people taking ballroom lessons and attending ballroom events during the first decade of this century, according to USA Dance Inc. The industry has not been without its challenges; during the recession, declining disposable income and heightened unemployment resulted in a greater number of consumers limiting their discretionary spending. Consequently, enrollment in dance classes declined and clients shifted away from private classes to more inexpensive group classes in 2009.
The Dance Studios industry, however, was quick to rebound. Shifting consumer preferences towards niche and fitness inspired dance classes mitigated industry revenue declines. As the economy improved and employment and discretionary income expanded, consumers shuffled back into dance studies, and industry revenue gradually improved. This industry is highly fragmented; the vast majority of dance studios operate from a single location catering to the local market. The most prominent companies in the industry include franchises such as Arthur Murray International and Fred Astaire Dance Studios. “Fueled by rising consumer interest in dance over the past five years, the number of dance studios is expected to increase at an average annual rate of 2.1%, to total an estimated 8,455 studios in 2014,” says Morea.
Over the five years to 2019, the Dance Studios industry is expected to grow. Improving economic conditions will result in greater per capita disposable income growth, fostering greater spending on recreational activities such as dance. Furthermore, rising income will boost demand for more lucrative private classes and high-profit merchandise sales, benefiting revenue growth for dance studio owners. The baby boomer generation is expected to be a source of growth for the industry over the next five years, particularly for ballroom dancing classes.
For more information, visit IBISWorld’s Dance Studios in the US industry report page.
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IBISWorld industry Report Key Topics
The Dance Studios industry includes studios that primarily offer instructional classes focused on providing knowledge and skills related to dance, including ballroom dancing, ballet, hip-hop and modern dance, among others. These include dance schools for children, intermediate and professional dancers. However, this industry does not include dance companies.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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